Nigeria: Shareholders Fret Over Poor Financial Performance of Mobil Oil

31 May 2007

Lagos — Shareholders have criticized the dwindling financial performance of Mobil Oil Nigeria Plc for the year ended December 31, 2006. Mr. Timothy Adeshina, a shareholder who spoke at the company's Annual General Meeting (AGM) held last week in Lagos said "From what is being witnessed today, it is like we are seeing a situation of capital flight. It is disturbing that a company in the previous year could make a turnover of N50.9 billion in 2005 and dropped to N50.8 billion in 2006, the profit before tax also reduced to N2,535,481 in 2006 from N3,393,903 in 2005.

It is not a good thing on the management that virtually all the performance indices dropped. This is not palatable to the company and we shareholders are expecting you to turn out good result and pay us dividend for our investment. It is not encouraging that the total asset of the company is also affected which in all sphere is not good omen for the growth of the company. The management must know that we are getting deeper into debt from what is obtained from the financial statement"

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